Riverside Utilities Pvt Ltd Vs Union of India and others (Orissa High Court)
In the case of Riverside Utilities Pvt Ltd Vs Union of India and others, the Orissa High Court addressed a legal challenge concerning the applicability of Goods and Services Tax (GST) on electricity transmission and distribution charges. The petitioner, represented by Mr. Jena, is a distribution company contesting a circular dated March 1, 2018, issued by the Central Board of Excise and Customs under the Ministry of Finance. The circular contained a clarification that specified certain fees and charges related to electricity transmission were subject to GST, which the petitioner argued should instead be exempt based on previous judicial rulings. Mr. Jena emphasized that the charges listed in the circular were incidental to the transmission of electricity and thus exempt as clarified within the document itself. He pointed out that a similar clarification had previously been invalidated by the Gujarat High Court in Torrent Power Limited v. Union of India, where the court had ruled against the imposition of GST on related charges.
The revenue’s representative, Mr. Kedia, argued that there was no reason for the court to interfere at this stage, especially since the revenue had filed a Special Leave Petition challenging the Gujarat High Court’s decision. However, the Orissa High Court determined that it would be prudent to stay the show cause notice issued to the petitioner while the matter awaited a decision from the Supreme Court. The court cited the Kusum Ingots and Alloys Ltd. v. Union of India judgment, which established that rulings regarding the constitutionality of parliamentary acts should be applied across India. The court concluded by staying the show cause notice issued on September 25, 2023, and the subsequent demand order from June 13, 2024, until the Supreme Court resolved the ongoing special leave petition concerning the matter.
